LONDON: The UK’s main indexes on Friday logged their sharpest weekly decline in almost a year, as the escalating war in the Middle East fuelled concerns about a resurgence in inflation, while a weak US jobs report added to investor worries.
The blue-chip FTSE 100 dipped 1.2 percent, while the FTSE 250 was down 0.8 percent on the day. Both indexes recorded their worst weekly showing since the April 2025 rout triggered by US President Donald Trump’s “Liberation Day” tariffs.
Shares of oil majors Shell and BP rose nearly 1.2 percent and 0.6 percent respectively, as Brent crude topped USD90 a barrel for the first time in two years as the conflict kept shipping and energy exports through the vital Strait of Hormuz blocked.
Qatar’s energy minister expects all Gulf energy producers to shut down exports within weeks. In an interview with the Financial Times, he said the move could drive oil to USD150 a barrel.
Soaring energy prices have prompted traders to sharply pull back bets of interest rate cuts this year, with money market futures pricing in just 15 percent odds of a 25-basis-point rate cut from the Bank of England this month, compared with 80 percent before the conflict began.